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Why Is The ISIGNTHIS Ltd Share Price On A Run?

Stuart Lucy

Stuart Lucy is an Investment Specialist at the Australian Stock Report, and has gained exposure to funds management and investment banking throughout his career. He draws on this experience to provide macroeconomic commentary and actionable investment insights to clients. Stuart is responsible for writing reports, is involved in delivering Macrovue webinars and provides general advice to our members on portfolio construction. Stuart currently holds RG146 General and Securities qualifications.

ISIGNTHIS Ltd (ASX: ISX) is up 15.7% on its open of $0.730 following the release of quarterly reports this morning.

iSignthis-ISX-share-price

ISX provides online businesses with transactional banking services from customer onboarding solutions to remote identity verification to payment processing and deposit-taking. This allows ISX global reach to any of the 4.3 Billion “bank verified” card or account holders in 3-5 minutes, the Company has a significant presence with all major card schemes including Visa, Mastercard, China UnionPay, Diners, Discover, JCB, and American Express.


The Company has released its June 2019 quarterly cash flow and half-year investor update.

Revenue has reached $6.3 million for Q2 2019 up 240% from $1.85 million for Q1 2019, with operating cash flow over the quarter up at $1.36 million. ISXPay, a key product that allows merchants to accept and process online payments, has generated an annualised Gross Processed Transaction Volume of $690 million, up 81% from Q1. The Company is also developing a Merchant Settlement System that will allow automated settlement across multiple payment channels, enabling ISX to scale future business operations as they bring in more merchants.

ISX has forecasted EBITDA for 2019 at $10.7 million, which compares to broker estimates of $3.8m. Despite a 25% increase in the company’s cost base they believe this will be offset with new product initiatives and the capture of further revenue opportunities.

ISX has been operating in the European markets with authorisation for eMoney and payment services given in March 2017, the company is finalising agreements for the use of patented solutions in customer authentication by September 2019. In Australia, ISX is expecting to be licenced as an Authorised Deposit-taking Institution (ADI) in Q3 2019.

The Company is also expecting to operate Exchange Settlement Accounts (ESA) by Q3 2019, this along with ADI licencing will allow ISX to access core payments systems with BECS Direct Debit and BSB allocation.

ISIGNTHIS Ltd operates researched patented technologies that allow maximum leverage as they avoid paying royalties and fees for their essential services. As speed to payment becomes increasingly competitive and merchants demand improved financial services the Company’s ability to move funds quickly will be a key selling point and its competitive advantage.

 


 

Disclaimer:

This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978) (“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).

This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.

ASR has no position in any of the stocks mentioned.

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